FTSE MIB Ticks Higher

The FTSE MIB edged higher to around 52,700 on Monday, extending gains from the previous session, as investors monitored developments in the Middle East and Italy’s ongoing banking consolidation. US-Iran tensions intensified after Washington struck Iranian missile launchers on Larak Island, while Tehran retaliated by targeting US military bases in Jordan. Energy-related stocks advanced alongside crude prices, with oil major Eni gaining 1.5% and Tenaris, a major supplier of steel pipes for the oil and gas industry, rising more than 2%. Domestically, banking stocks remained in focus as Intesa Sanpaolo prepared for a September 10 shareholder meeting on its MPS bid, while MPS continued to pursue its competing expansion plans involving Banco BPM and Banca Generali. MPS rose 1%, while Intesa Sanpaolo and Unipol edged up more than 0.2% each. For the month, the benchmark index is heading for a modest decline.

The FTSE MIB Index gained 351 points or 0.67 percent on Friday to close at 52616 points. Gains were led by Stellantis N.V. (2.40%), Bper Banca (2.21%) and Buzzi Unicem (2.10%). Biggest losers were Leonardo SpA (-3.87%), Fincantieri (-1.73%) and Prysmian (-0.89%).

The FTSE MIB rose 0.7% to 52,654 on Friday, supported by upbeat sentiment across sectors. Merger talks continued to overshadow financials, with Generali (0.5%) saying MPS’s (0.3%) takeover bid for Banca Generali offers “growth opportunities.” Unipol's (1.2%) Chairman said MPS would “lead” a merger with BPER (2.2%) and become the second-largest banking group in Italy. Meanwhile, Fed sentiment turned hawkish following Fed Chairman Warsh's statements that if inflation wasn't returning to target, they "would have work to do". The ECB is also expected to raise rates in September, potentially weighing on lenders. European automakers are feeling the squeeze from Chinese carmakers’ advances, with Stellantis (2.3%) reportedly allowing Chinese automakers to share their factories to ease overcapacity. Utilities gained as European gas prices declined. Meanwhile, defense stocks underperformed following reports of a possible reversal by the UK Finance Minister on planned defense spending.